Featured Research

from universities, journals, and other organizations

China's rapid economic growth means population is 'wealthier but unhappier’

Date:

April 3, 2012

Source:

University of Oxford

Summary:

The average personal income in China has risen by five per cent a year since the mid 1990s. Yet according to experts, this recent wealth does not equate with personal happiness. Researchers found that the happiness of the Chinese people has not risen as expected. When people were asked to rate their happiness or satisfaction with life, the average happiness score was found to have fallen over time.

Share This

The average personal income in China has risen by five per cent a year since the mid 1990s. Yet according to Professor John Knight and Dr Sai Ding in their new book, this recent wealth does not equate with personal happiness. In China's Remarkable Economic Growth, they find that the happiness of the Chinese people has not risen as expected. When people were asked to rate their happiness or satisfaction with life, the average happiness score was found to have fallen over time.

Related Articles

The book is a culmination of a major research project funded by the Leverhulme Trust to explore China's economic success, using macroeconomic data from the start of economic reform in 1978 and national household surveys undertaken by the Chinese Household Income Project. No other major country has grown so fast -- by some ten per cent a year -- for no less than three decades. The Oxford University researchers adopt a broad, systemic approach to explain why China is such an international outlier. The authors also explore the consequences of this remarkable economic phenomenon and social transformation for the Chinese people.

John Knight explained: 'The unhappiest group in Chinese society are the rural-born workers who have migrated to the cities and towns. People still living in rural areas are found to have the highest happiness scores. Despite their much higher incomes, urban-born people are less happy than rural people. We attribute this to the loss of their "iron rice bowls" -- the security that the state-owned enterprises had provided before they were reformed or privatised -- and their aspirations to "keep up with the Zhous" in the new market economy. The rural-urban migrants -- there are now 150 million of them -- have commonly raised their incomes by migrating but their aspirations have risen even faster as they become part of urban society.'

John Knight and Sai Ding argue that the policies pursued by the Chinese Communist Party since the late 1970s qualify China as a 'developmental state', in which the overriding policy priority is economic growth. China became a developmental state when the leadership under Deng Xiaoping introduced economic reform in order to restore and maintain political legitimacy. The drive to create a market economy succeeded because one reform led to another in a cumulative process. New institutions provided the right incentive structures, a prime example being that appointments at many levels rewarded success in promoting economic growth. A policy of fiscal decentralisation gave growth incentives to all tiers of government. Entrepreneurs gained confidence from these policies, leading to what the authors say was, by international standards, a 'remarkably high' level of both investment and saving.

They describe this combination of factors as a 'virtuous circle' of high confidence, high investment, high growth, and so on. However, it is argued that this growth has created a set of new and different problems, which threaten the virtuous circle. Income inequality -- initially too low to provide the incentives needed in a market economy -- has risen to become the highest in Asia. China's environmental problems have escalated, and corruption is a source of concern for the leadership. China's system of governance provides little voice for its people and little political accountability, say the authors. They also warn that the virtuous circle could be broken by an adverse shock, such as a financial crash (associated with China's macroeconomic imbalances) or social unrest. Because of these rising tensions the Chinese government has recently introduced policies to promote a 'Harmonious Society'.

The book cites other reasons why the growth rate is likely to slow down somewhat in the future. There is less scope for the rapid structural change that has fuelled growth up to now. The one-child family policy of the reform period means that the labour force is beginning to decline, and the hitherto abundant supply of migrants from the countryside is drying up. This will require a change in development strategy away from the currently successful one of producing labour intensive exports.

Sai Ding commented: 'Can other developing countries learn from China's growth success? The Chinese economy is too different to permit simple copying. The most important lesson that it offers other countries lies in the answer they can find to the question: Can they create a developmental state while avoiding the disadvantages that have accompanied it in the Chinese case?'

The book China's Remarkable Economic Growth is published by OUP on 12 April 2012.

University of Oxford. "China's rapid economic growth means population is 'wealthier but unhappier’." ScienceDaily. ScienceDaily, 3 April 2012. <www.sciencedaily.com/releases/2012/04/120403141216.htm>.

University of Oxford. (2012, April 3). China's rapid economic growth means population is 'wealthier but unhappier’. ScienceDaily. Retrieved March 3, 2015 from www.sciencedaily.com/releases/2012/04/120403141216.htm

University of Oxford. "China's rapid economic growth means population is 'wealthier but unhappier’." ScienceDaily. www.sciencedaily.com/releases/2012/04/120403141216.htm (accessed March 3, 2015).

More From ScienceDaily

More Science & Society News

Featured Research

Mar. 3, 2015 — No significant change in home habits of smokers have been observed in the aftermath of a ban on smoking in public spaces, researchers report. Greater inspiration to kick the habit likely comes from ... full story

Mar. 3, 2015 — Why do people shake hands? A new study suggests one of the reasons for this ancient custom may be to check out each other's odors. Even if we are not consciously aware of this, handshaking may ... full story

Mar. 3, 2015 — It appears that stress markers in unemployed people can be found, independent of smoking, alcohol consumption and overweight/obesity. Results from a study suggest that long-term unemployment may be ... full story

Mar. 3, 2015 — On the heels of an American nationwide measles outbreak comes a report that campaigns aimed at scaring people about the consequences of non-vaccination might not be as effective as many think. ... full story

Mar. 2, 2015 — Despite sharp increases in spending on cancer treatment, cancer mortality rates in the United States have decreased only modestly since 1970, a study has found. "Our results suggest that cancer care ... full story

Mar. 2, 2015 — In the first study of its kind since the 1920s, rats in New York City were found to carry a flea species capable of transmitting plague pathogens. Among them: 500-plus Oriental rat fleas, notorious ... full story

Mar. 2, 2015 — The odds of picking a perfect bracket for the NCAA men's basketball March Madness championship tournament are a staggering less than one in 9.2 quintillion (that's 9,223,372,036,854,775,808), ... full story

Mar. 2, 2015 — A survey of US high school students suggests that 1 in 5 female students and 1 in 10 male students who date have experienced some form of teen dating violence (TDV) during the past 12 months. "These ... full story

Mar. 2, 2015 — One of the first American national studies to examine risk factors for use of synthetic marijuana among a large, nationally representative sample of teens. Popular among teens, in 2011, synthetic ... full story

Mar. 2, 2015 — Pediatricians are facing increasing pressure from some parents who want to spread out the recommended vaccine schedule for their children by postponing vaccines, pointing to a need for improved ... full story

Featured Videos

Woman Convicted of Poisoning Son

AP (Mar. 3, 2015) — A woman who blogged for years about her son&apos;s constant health woes was convicted Monday of poisoning him to death by force-feeding heavy concentrations of sodium through his stomach tube. (March 3)
Video provided by AP

Nurse Who Survived Ebola Virus to File Lawsuit

AP (Mar. 2, 2015) — A lawyer for Nina Pham, the 26-year old nurse who survived after contracted the Ebola virus, says the young woman&apos;s &apos;life has changed forever. &apos; Pham is preparing to file a lawsuit against Texas Health Resources for negligence. (March 2)
Video provided by AP

Related Stories

Mar. 17, 2014 — Why is being happy, positive and satisfied with life the ultimate goal of so many people, while others steer clear of such feelings? It is often because of the lingering belief that happiness causes ... full story

July 22, 2013 — Do migrants from Eastern European countries become happier once they have settled in Western Europe? A sociologist has investigated this question -- and the answer might make potential migrants ... full story

Dec. 3, 2012 — For people living in both rich and poor countries, the average person's happiness is based on a combination of individual wealth, possessions and optimism, according to an analysis of new ... full story

Oct. 14, 2011 — A new study of more than 440 technology entrepreneurs reveals that wealth does not necessarily bring happiness. According to new research, long-term employment growth in a new technology-based ... full story

Dec. 13, 2010 — A new analysis shows that long-term happiness does not correspond to increased wealth. Across a worldwide sample of 37 countries, rich and poor, ex-Communist and capitalist, researchers have shown ... full story

ScienceDaily features breaking news and videos about the latest discoveries in health, technology, the environment, and more -- from major news services and leading universities, scientific journals, and research organizations.